The cleantech sector is one of the most important industries today, and investor interest on the rise. Here's an overview of how to invest in cleantech.

There’s no denying the importance of the cleantech sector–even more so as climate change continues to be a growing concern.

It should come as no surprise, then, that interest in the cleantech invest sector is making waves–and there’ s no shortage of opportunities to be made for those stepping into the market. Case in point, it’s projected that the global cleantech sector will be worth as much $2.5 trillion by 2020–making it an attractive space for investors.

With that in mind, here the Investing News Network (INN) provides a brief overview of how to invest in cleantech–from a variety of companies to ETFs–and an overall breakdown of the market.

Find out how the clean energy market will be affected in 2018

Cleantech invest: stocks

The obvious way to cleantech invest would be through stocks. Indeed, as the overarching term of cleantech encompasses everything from energy, water, transportation and manufacturing, there’s certainly no shortage of companies to choose from. Companies with market caps of less than $500 million are a good place to start, including the ones listed below:

American Manganese (TSXV:AMY): American Manganese is a speciality and critical metal company, but it has a focus on using its hydrometallurgical process to recycle lithium,-ion battery cathode materials–making it a perfect candidate for our cleantech stocks list.

Bion Environmental Technologies (OTCQB:BNET): Bion Environmental is well positioned to “capture a significant portion of the billions of dollars it is spending” that is being put into the evolving cleantech space. Highlights of Bion’s technology include its ability to reduce water pollution.

Broadwind Energy (NASDAQ:BWEN): With a focus in the US, Broadwind Energy provides a variety of products and services to energy, mining and infrastructure sectors, primarily in the US wind energy industry. Broadwind has two main segments, including the Towers and Weldments, and Gearing.

Carmanah Technologies (TSX:CMH) Carmanah Technologies designs, develops, and distributes products with a focus on energy optimized LED solutions in infrastructure. The company has three segments: Signals, illumination and power.

dynaCERT (TSXV:DYA): dynaCERT is currently developing its patent-pending Carbon Emission Reduction Technology, HydraGEn. The system provides engines with pure hydrogen and oxygen gasses to generate a cleaner, more efficient burn.

Find out how the clean energy market will be affected in 2018

Eguana Technologies (TSXV:EGT): Eguana Technologies designs and manufactures power control solution with a focus on grid interactive energy storage systems. Its integrated EES consists of three main parts: the software controller/the energy management system, the battery and advanced power controls.

H2O Innovation (TSXV:HEO): has a focus in the water industry, most notably providing technical water treatment solutions based on membrane filtration technologies to smaller communities, energy and mining ended-users.

MGX Minerals (CSE:XMG): MXG Minerals is a mining company in the lithium and magnesium business with environmentally friendly options–such as magnesium processing results in no tailings. More recently, the company has moved towards a full-service lithium extractor and water treatment option for o&g developers.

Natcore Technology (TSXV:NXT): Natcore is an advance business research and development solar cell company with two primary technologies it’s working on: low-cost all black solar cell structures and black silicon cells.

Find out how the clean energy market will be affected in 2018

Cleantech invest: ETFs and index

For investors who are more interested in the commodity as a whole rather than a single company, ETFs are a popular choice among investors–especially for those who are making first-time decisions.

As such, there is a vast number of cleantech ETFS ranging from solar wind to clean energy, including:

Guggenheim Solar ETF (NYSEARCA:TAN): Guggenheim Solar was incepted on April 15, 2008 and currently tracks 28 holdings, including First Solar (NASDAQ:FSLR), current as of October 5.

PowerShares Cleantech Portfolio ETF (NYSEARCA:PZD): This ETF started on October 24, 2006, and contains 52 holdings, such as Autodesk (NASDAQ:ADSK).

First Trust Global Wind Energy ETF (NYSEARCA:FAN): The First Trust Global Wind Energy ETF began on June 16, 2008 and has accumulated 42 holdings since then, including Vestas Wind Systems (OTCMKTS:VWDRY).

For a complete look at the variety of cleantech ETFS, the ETF database is also a great place to start.

Finally, another way to cleantech invest is through an index, such as the the S&P TSX Renewable Energy and Clean Technology Index (INDEXTSI:TXCT). This is considered a form of passive investing, and a way of spreading the potential risks.